What is Dropshipping?

Dropshipping is a process of selling Products without having to stock any overhead. You would sell the merchandise at a cost you would determine. After the customer pays you for the item, you would pay as our price and send us your customer's details. We will drop ship the product out to the customer, and the difference between your price and the our price is your profit, all to keep!

How Does Dropshipping Work?

Let's say you purchase an item from a us for USD120.00. You would sell that item for a price determined by you, let's use USD135.00 plus USD45 shipping for an example. After you collect the payment of USD180 from the customer and their mailing address, you would forward the USD120.00 plus USD45 shipping cost to us, and keep the USD15.00 as profit, never having to touch the Product, as we will ship it out to the customer.
This type of arrangement is extremely beneficial to both we and you, and your customers. We do not have to open too many storefronts, or hire sales peoples to sell our products, as that is the role of the dropshipper.
You, as the dropshipping agent, have a way to earn some spare money, having no start-up costs, no overhead, no packaging costs or headaches, and can create an extremely useful relationship with the supplier.

The diagram below explains in further details how dropshipping works.

Who Can Use Dropshipping?

Dropshipping is suited for anyone looking to be a retailer, particularly startup companies and existing businesses looking to expand. Dropshipping can help smaller businesses have more access to wholesale distributors that they otherwise may not be able to work with. They can also save them money because they don't have to hold large capital to buy inventory or explore other markets. This gives startup retailers, as well as experienced retailers, the chance to explore the markets and find their niche market in which they want to market to customers. They more time to explore their competition and develop a marketing plan with a dropshipper, without the fear of losing money. Since retailers can list products without purchasing them unless they sell, they neither lose money nor do are they required have the money upfront to start their business.

How Do I Use Dropshipping?

Dropshipping is easy to use and only requires five steps. First, choose a product. Second, advertise your product on your site and other places. Third, sell the product and collect the payment. Fourth, place the order with the supplier. Finally, the customer receives the order and the process is complete. You have now gained a profit, and hopefully a loyal customer too. Repeat the process to keep making profits from your business.

Now that you know how dropshipping works, you can begin researching for a dropship company to sign up with. After signing up, you are on the path to starting or expanding your retail business into a profitable enterprise.

Sourcinggate.com offers dropship to their registered customers at no extra charge. This service allows you to create a specialized online store and stock it with a vast range of products. Your online store might focus on electronics or household goods but you may decide on supplying a number of goods to your customers.

Choosing dropship from Sourcinggate.com means that you do not have to maintain costly inventories or figure out complex programming codes as that is all done for you. Sourcinggate  takes care of all your day-to-day business processes leaving you plenty of time focus on inventories and sales but most importantly making money from your customers.

Drop Ship On Sourcinggate.com

Dropship with Sourcinggate enables you to be your own boss with your on Internet company in a matter of hours. We provide you with everything you need to run a profitable Internet company. Our customers enjoy software, supplier, credit card processing, hosting, and a full online training center where you can watch videos that teach you about the industry and how things work.

In order to prevent any fraudulent activity we always double-check account details especially if the shipping address is different to the billing address. So if you are a new drop-shipping customer, please make sure that your paypal account is verified.

We never include sourcinggate publicity materials or invoices within the packages sent to your customers in order to protect your reputation as a reputable vendor. In order to protect the true source of the goods and the price you as the vendor paid for them, sourcinggate employs various methods in order to ensure continuous customer loyalty.

If your customers experience any technical difficulties, or want to return goods purchased, they must first contact you as the sourcinggate Account holder as well as the vendor of their purchased goods.

Please note that any import taxes incurred must be paid to the courier upon delivery of the goods. Therefore when using dropship, your customers will be expected to pay these taxes.

Please note it's your responsibility as the sourcinggate buyer/ dropship vendor to be knowledgeable in all taxes and inform your customers in advance. Sourcinggate accepts ZERO responsibility for providing tax information relevant to your country, although of course we will do whatever we can to help you minimize the tax burden if you have special packing/declaration instructions.

How Dropship Works